Investor · Tri State Area · Member since 2018 · 107 posts · 24 votes
These numbers make me cringe. I just ran my 60 day call log report and this is what I have:
In the last 60 days I have:
5129 - Skip Traced Addresses
11,245 - Numbers received
out of those 11, 245 numbers: .82% (92 numbers) came in as "leads" maybe 5-9 actually wanted to sell.
91.08% of the 11,245 numbers I called, I never spoke to a live person.
I am not a veteran at any of this, but I think there must be a breakdown somewhere. If not, I need a new marketing strategy or new market, because these numbers make absolutely NO SENSE!!! If I am wrong, and these numbers are accurate please let me know.
I am serious about success, but what I seem to be doing is wasting serious money at the moment. Please give any advise you have.
All of my investors making cold calls, which system are you using for skip tracing, what system are you using to make calls, how many numbers do you usually get back and what is your contact rate, and your motivated seller rate? If my rate is accurate I will continue, but what are you contact rates for cold calls?
I think how much sense it makes depends on whether you are seeing a profitable return or not. Did any of those 5-9 leads turn into deals, and did those deals end up being profitable for your business? I know some investors that run direct mail and get a 1-2% response rate, but their cost per deal gets out of hand because of the number of mailers sent and the cost of mailers and lists.
Definitely consider looking at your numbers from the profit side instead of focusing on the response rate. If the channel isn't profitable, then I'd look at more inbound marketing. The problem with outbound marketing is exactly what you mentioned above; paying for addresses and numbers that don't respond.
Most of the investors that I work with directly have inbound marketing setup as their primary source, and are doing outbound marketing as a small supplemental source of leads. Why pay to call/mail people that aren't interested in selling? Instead, maybe look at setting up a funnel that allows people who actually WANT you to buy their house to find you. Getting a website, starting on SEO, and running Google Ads are great tactics to get in front of people who actually want to work with you. It makes you the hero in their home selling situation.
TLDR: If your outbound marketing isn't profitable, check out inbound.